HDB Financial Services Ltd.Record Disbursements & Margin Expansion

HDB Financial Services delivered a strong Q3 FY26 performance with record disbursements of ₹17,917 crores, up 15% quarter-on-quarter, marking an all-time high.

The gross loan book reached ₹1,14,577 crores, growing 12.2% year-on-year, while net interest income rose 22.1% year-on-year to ₹2,285 crores. Net interest margin expanded to 8.09% from 7.95% in Q2, despite competitive pressures on yields. Adjusted profit after tax grew 45% year-on-year to ₹686 crores, excluding a one-time ₹60.52 crore provision for new labour codes. Management expressed cautious optimism as asset quality showed signs of stabilization, with Stage 1 improving to 95.22% and credit costs declining to ₹712 crores from ₹748 crores.

The previously troubled unsecured MSME segment has stabilized after five to six quarters of pain, positioning the company to resume growth. CFO Jaykumar Shah guided for NIMs to remain range-bound between 7.9-8.0% with 5-10 basis points variance in coming quarters. Consumer finance drove momentum with 17.3% quarter-on-quarter growth led by auto, two-wheelers, and consumer durables. Management targets medium-term credit cost reduction of 10-20 basis points from current levels while maintaining long-term growth aspirations of nominal GDP plus 6-7%.